10,000 points LOOOOOMING!
The US market ended mixed with the Dow down 14 points even though earnings and economic numbers continue to be encouraging.
The dollar is down, store sales are up, earnings remain great, so why is the market this weak? Indeed, market internals are extremely weak as well with decliners and advancers almost 1 : 1. There is only one explanation... the 10,000 points! Yes, the 10,000 points level can be deemed the dividing line between a recession market and a strong market. Investors are still not too sure about casting that vote from recession market to a strong bull market yet. This is also why the 10,000 points zone is going to be such a strong resistance level. In fact, don't be surprised to see profit taking way before 10,000 points is reached especially with the Dow now in short term overbought once again.
For now, the Dow remains in all out bull trend once again.
The dollar is down, store sales are up, earnings remain great, so why is the market this weak? Indeed, market internals are extremely weak as well with decliners and advancers almost 1 : 1. There is only one explanation... the 10,000 points! Yes, the 10,000 points level can be deemed the dividing line between a recession market and a strong market. Investors are still not too sure about casting that vote from recession market to a strong bull market yet. This is also why the 10,000 points zone is going to be such a strong resistance level. In fact, don't be surprised to see profit taking way before 10,000 points is reached especially with the Dow now in short term overbought once again.
For now, the Dow remains in all out bull trend once again.
Chart of Dow Made Using Telechart. Want Your Own Charting Software? Download FREE Now!
posted by Jason Ng at 6:07 PM
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